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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments

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To: TRIIBoy who wrote (14728)1/4/2001 7:43:28 PM
From: torquatus  Read Replies (1) of 18998
 
How can they miss earnings when the earnings are manufactured? As for the advertising, notice the immense capex combined with flat to declining membership--Bally is raising rates but not cramming any more people into the already full gyms. Declining advertising can be explained as a function of the fact that with the new equipment, there is not the same need to replace churning members. It is grossly overvalued and the accounting is fraudulent, but none of that is going to change in the next 2 to 3 quarters, or the next 2 to 3 years.
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